Which of the following are characteristics of a typical isoquant?
A)All input combinations on the isoquant will produce the same level of output.
B)The marginal rate of technical substitution decreases as more labor is substituted for less capital.
C)A change in input prices shifts the isoquant map.
D)both a and b
E)none of the above

Question

Quizplus · Accepted Answer

A is true as all input combinations on an isoquant will produce the same level of output. B is also true as the marginal rate of technical substitution decreases as more labor is substituted for less capital. C is false as a change in input prices will affect the slope of the ratio between the input prices and will not shift the isoquant map. Therefore, the correct choice is D.

Which of the Following Are Characteristics of a Typical Isoquant